JSC Lukoil has signed an agreement with a consortium of banks to borrow $1 billion for the second stage of the Shah Deniz natural gas project offshore Azerbaijan.
Lukoil said $560 million will be provided by the European Bank for Reconstruction and Development (EBRD), the Asian Development Bank (ADB), and the Black Sea Trade and Development Bank.
The remaining $440 million will be provided by a commercial banking syndicate of ING Bank NV, the Bank of China, UniCredit AG, and Societe Generale via B Loan programs of the EBRD and ADB.
The second stage project is 70 km offshore Baku (OGJ Online, Mar. 20, 2014). Total production for stage one and stage two is expected to peak at 25 billion cu m/year. Lukoil has 10%.